U.S. President Donald Trump has expressed strong criticism towards Canada, employing some of the most severe rhetoric he has ever used against this former ally and trading partner. He has pledged to inflict significant economic damage on the country following Ontario’s decision to impose a surcharge on electricity destined for the United States, a move intended to retaliate against his initial set of tariffs.
In a series of posts on social media on Tuesday morning, the day after Ontario Premier Doug Ford’s electricity surcharge came into effect, Trump asserted that Canada would face “a financial price for this so substantial that it will be chronicled in history books for many years to come.”
Trump escalated his provocative remarks regarding annexation, stating that the only way for Canada to evade his efforts to undermine its economy is to “become our cherished Fifty-First State.”
“This would eliminate all tariffs and everything else entirely,” he claimed.
He also announced that he has directed Commerce Secretary Howard Lutnick to impose an additional 25 percent tariff on all steel and aluminum imports from Canada, raising the total tariff on these products to 50 percent effective Wednesday.
Trump inaccurately asserted that Canada is “ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD.” Prior to the onset of his trade war, the majority of trade between Canada and the U.S. was conducted without tariffs under the Canada-U.S.-Mexico Agreement, which Trump himself negotiated and signed during his first term.
The imposition of tariffs by Trump has once again caused significant turmoil in the U.S. stock market.
The S&P 500, which represents the 500 largest publicly traded companies in the United States, has experienced an eight percent decline over the past month. Meanwhile, the technology-focused Nasdaq has fallen by ten percent.
Trump’s unpredictable trade policies and economic strategies have instigated panic among stock traders, leading to a surge in equity sales due to the prevailing uncertainty surrounding Canada, the United States’ largest trading partner.
His unwillingness to dismiss the possibility of a recession has exacerbated the situation.
“I dislike making predictions of that nature,” Trump remarked during an interview with Fox News over the weekend.
Additionally, Trump has threatened to significantly increase tariffs on automobiles imported from Canada on April 2, aiming to disrupt that vital industry within the country.
Recently, Trump temporarily suspended the 25 percent tariffs on certain Canadian goods for an additional month following objections from American business leaders who argue that the trade conflict is detrimental to financial markets.
However, his decision to continue imposing targeted tariffs on steel and aluminum raises serious concerns for Canada, especially considering that previous similar tariffs led to a substantial decline in Canadian exports, jeopardizing jobs and businesses.
Data from Statistics Canada indicates that aluminum exports plummeted by approximately fifty percent in 2019 due to Trump’s trade measures during his initial term.